Inflation expectations among consumers in euro area remain unchanged: ECB

FRANKFURT, Oct. 7 (Xinhua) -- Consumers in the euro area expect that inflation will remain unchanged for the next 12 months, according to a survey released by the European Central Bank (ECB) on Friday.

The median expectation for the three years ahead also remains unchanged, the survey said, but consumers expect slight economic growth, as well as increases in nominal income and spending.

The central bank's consumer expectations survey, a monthly survey of around 14,000 adults from six euro area countries, showed that inflation expectations in August for the next 12 months and three years ahead remained unchanged at 5.0 percent and 3.0 percent respectively. The ECB is targeting an inflation rate of 2 percent over the medium term.

Consumers estimate that their nominal income will grow by 1.0 percent over the next 12 months, up from 0.8 percent in July. However, they expect a faster increase in expenses, of 4.5 percent for the next 12 months, up from 4.2 percent in July. This is due to the increases anticipated by lower- and middle-income respondents.

"Economic growth expectations for the next 12 months increased slightly from -1.9 percent in July to -1.7 percent", said the ECB.

Meanwhile, forecasts for the unemployment rate 12 months from now were marginally lower at 11.9 percent, which was in line with the stronger expectations for economic growth.

Consumer estimates for the increase in the price of their homes over the coming year have slightly lifted, to 3.4 percent, while predictions for mortgage interest rates have been raised further to 4.4 percent, the ECB added.